EUR/USD is closer to hitting the 50-Day Moving Average roadblock as it moves to the upside, while the greenback recovers across the board. The EUR/USD may be retreating after confronting tough resistance, yet the bullish potential continues to be solid.
However, a US Treasury yields recovery supports the fresh uptrend for the dollar and therefore limits further EUR/USD gains.
Europe Battles Concerns On Different Fronts
On the European front, worrying news out of Ukraine following President Volodymyr Zelenskyy’s comments that their military is gearing up for a renewed Russian offensive along with increasingly concerning outlooks about inflation is doing nothing more than restoring the dollar’s safe-haven charm. In fact, soaring prices across the EU pushed eurozone peripheral yields to new record highs.
Trading Focus Of The Day
Thursday’s trading focus seems to be on the main currency pair as investors feel the broader market sentiment shift.
The slight reduction in oil prices happened as news comes out that the US is considering tapping into oil reserves. The tactical move leads to a 5% drop in prices. New trading opportunities appear as markets turn their attention to the German Retail Sales and US PCE Inflation due later in the day. In addition to the Eurozone Preliminary inflation data and the US NFP report coming out on Friday.
Meanwhile, as China battles a surge in Covid cases and renewed lockdown measures, it takes unusual steps to secure its financial sector as it requires essential staff to take residence in the offices to avoid severe market disruptions.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
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